A weekly newsletter from the U.S. Department of Energy's (DOE) 
<http://www.eere.energy.gov/>Office of Energy Efficiency and 
Renewable Energy (EERE).

May 12, 2004

<#news>News and Events

<#6854>USDA Offers $22.8 million for Energy Efficiency and Renewables
<#6855>Massachusetts to Cut Greenhouse Gas Emissions
<#6856>Colorado Utility Plans to Add 500 Megawatts of Renewables
<#6857>Nevada Adopts Solar Energy Incentives, Awards First to Washoe Tribe
<#6858>Geothermal Power Projects Under Development in Nevada and Idaho
<#6859>New System Generates 4.5 Megawatts from Gas Turbine Exhaust

<#site>Site News

Distributed Energy Forum

<#energy>Energy Connections

Despite a Rough Spring, California Expects No Power Problems this Summer



News and Events

USDA Offers $22.8 million for Energy Efficiency and Renewables

The U.S. Department of Agriculture (USDA) announced last week that it 
is offering $22.8 million in grants to support energy efficiency 
improvements and renewable energy installations at farms, ranches, 
and rural small businesses. The funds may be used to pay up to 25 
percent of the project costs. Eligible renewable energy projects 
include those that derive energy from a wind, solar, biomass, or 
geothermal energy sources, as well as projects that use any of these 
energy sources to generate hydrogen for use as a fuel. See the 
<http://www.usda.gov/Newsroom/0182.04.html>USDA press release.

The USDA's Renewable Energy Systems and Energy Efficiency 
Improvements program was created as part of the 2002 Farm Bill. In 
2003, the program awarded $21.7 million to 114 applicants from 24 
states, helping them to make energy efficiency improvements and 
develop or improve wind and solar power systems and biomass energy 
systems, such as anaerobic digesters and ethanol production plants. 
For the formal "Notice of Funds Availability" for this year's funds, 
as well as additional information about the program, see the 
<http://www.rurdev.usda.gov/rbs/farmbill/04fbnofa.htm>program Web 
site.

Massachusetts to Cut Greenhouse Gas Emissions

Massachusetts Governor Mitt Romney unveiled a comprehensive Climate 
Protection Plan for the state last week, committing the state to 
reduce its greenhouse gas emissions through measures such as energy 
efficiency and renewable energy. The state has pledged to cut its 
energy use enough to cut greenhouse gas emissions at state facilities 
by 25 percent by 2012, and will purchase only fuel-efficient vehicles 
and energy-efficient office equipment for its facilities. In 
addition, Massachusetts will improve its efficiency standards, 
encourage the construction of "green" buildings, encourage the 
development of renewable energy, and implement California's Low 
Emission Vehicle program to reduce emissions from vehicles in the 
state.

The state aims to form partnerships with public and private entities 
in Massachusetts to reduce greenhouse gas emissions to 1990 levels by 
the year 2010, with an additional 10 percent reduction by 2020. To 
allow flexibility in meeting those goals, the state plans to develop 
a market for earning and trading greenhouse gas emissions credits 
within the state. See the 
<http://www.mass.gov/portal/govPR.jsp?gov_pr=gov_pr_040506_climate_act 
ion_plan.xml>governor's announcement or go directly to the full 
Climate Protection Plan 
(<http://www.mass.gov/ocd/docs/MAClimateProtectionPlan.pdf>PDF 852 
KB). <http://www.adobe.com/products/acrobat/alternate.html>Download 
Acrobat Reader.

Colorado Utility Plans to Add 500 Megawatts of Renewables

 
Xcel Energy's Ponnequin Wind Farm in northern Colorado may be a sign 
of things to come.
Credit: Warren Gretz, NREL

Xcel Energy filed its least-cost resource plan with the Colorado 
Public Utilities Commission (CPUC) in late April, and the plan 
includes up to 500 megawatts of renewable energy capacity, 
predominantly from wind power. The utility also plans an all-source 
bid process (that is, requesting bids from all types of power 
sources) that could yield more renewable energy projects. Altogether, 
Xcel Energy plans to acquire 3,600 megawatts of new generating 
capacity in Colorado by 2013, much of which will consist of power 
plants fueled with coal or natural gas. But the utility plans to 
pursue its renewable energy plans first, and has asked the CPUC for 
approval to request proposals for 500 megawatts of renewable energy 
in July 2004. See the 
<http://www.xcelenergy.com/XLWEB/CDA/0,3080,1-1-1_5929_8634-11337-0_0_ 
0-0,00.html>Xcel Energy press release.

Xcel Energy's request for proposals for renewable energy should do 
well, if the results from a similar request by PacifiCorp are any 
indication. PacifiCorp, which serves customers in six western states, 
recently requested proposals for 1,100 megawatts of renewable energy 
and received 42 bids for 54 projects totaling 5,600 megawatts. Wind 
power comprised 85 percent of the proposed capacity, and geothermal 
and hydropower split the remainder. See the 
<http://www.pacificorp.com/Press_Release/Press_Release37243.html>Pacif 
iCorp press release.

Nevada Adopts Solar Energy Incentives, Awards First to Washoe Tribe

Nevada has ample solar energy resources, a fact that led the state's 
legislature to pass a bill last year that provides incentives for 
solar power installations. In early April, the Nevada Public Utility 
Commission (PUC) voted to adopt new regulations to implement those 
incentives, thereby establishing the state's Solar Energy Systems 
Demonstration Program. The new program offers $5 per watt of solar 
generating capacity, up to a combined total of 500 kilowatts, 
beginning this July. By 2006, the incentive payment will be reduced 
to $3 per watt, but the total eligible capacity will be expanded to 3 
megawatts. In exchange for the incentive payment, participants will 
transfer the Renewable Energy Credits from their installations to 
their utility, thereby helping the utilities to meet their renewable 
energy requirements. In late April, the Nevada PUC announced the 
first participant in the program: the Washoe Tribe of Nevada and 
California. The tribe will install a 7.5-kilowatt solar power system 
on the Washoe Environmental Protection Department building in 
Gardnerville, about 15 miles south of Carson City. See the Nevada 
PUC's press releases from April 8th 
(<http://www.puc.state.nv.us/news/2004/AdoptRegs.pdf>PDF 116 KB) and 
April 28th (<http://www.puc.state.nv.us/news/2004/tribe.pdf>PDF 104 
KB). <http://www.adobe.com/products/acrobat/alternate.html>Download 
Acrobat Reader.

The Nevada PUC also took action in late April to encourage renewable 
energy development in the state by requiring the state's utilities to 
consider the economic impact and environmental benefits of renewable 
resources when preparing their long-term energy plans. The new 
regulations also allow the PUC to award financial incentives, such as 
enhanced financial returns, for some renewable energy projects. See 
the Nevada PUC press release 
(<http://www.puc.state.nv.us/news/2004/regs.pdf>PDF 112 KB).

Geothermal Power Projects Under Development in Nevada and Idaho

Crucial steps are now underway in the development of two new 
geothermal projects in Nevada and Idaho.

Nevada Geothermal Power, Inc. completed the second deep geothermal 
test well at its Blue Mountain geothermal project in northern Nevada 
in late April. Although the first well found geothermal fluids at a 
temperature of 300 degrees Fahrenheit-sufficient for power 
production-the company announced last week that it has found a 
maximum temperature of 330 degrees Fahrenheit during preliminary 
tests at the second well, which was primarily funded by DOE. The 
company believes that the geothermal resource at the site extends 
over a two-square-mile area, which bodes well for power production. 
The company plans to develop a 30-megawatt geothermal power plant at 
the site, and believes the site could eventually support 100 
megawatts of geothermal power production. See the Nevada Geothermal 
Power press release from May 6th 
(<http://www.nevadageothermal.com/News/Press_Releases/2004/may.06.04.p 
df>PDF 114 KB) and the 
<http://www.nevadageothermal.com/blue-mountain-geothermal.htm>Blue 
Mountain project description. 
<http://www.adobe.com/products/acrobat/alternate.html>Download 
Acrobat Reader.

In Idaho, U.S. Geothermal Inc. is preparing to begin flow tests on 
its five production wells at its Raft River Geothermal Project. The 
site is the former location of a DOE demonstration plant for 
binary-cycle power technology and includes four production wells that 
were drilled in the late 1970s. The company has also leased a fifth 
production well on an adjacent property. After about a month and a 
half needed to open the wells and clear them of debris, the flow 
tests should last one to two more months. Funded largely by DOE, the 
flow tests will help determine the potential energy production from 
the geothermal wells, which will allow the company to design the 
power plant for the project. The company is currently negotiating a 
contract with Idaho Power Company to supply 10 megawatts of 
geothermal power for 20 years, and is working with the Bonneville 
Power Administration on the plant's connection to the power grid. 
Located in central Idaho about 10 miles north of the Utah border, the 
project could be the first commercial geothermal power plant in 
Idaho. See the company's press releases from February 17th 
(<http://www.usgeothermal.com/news/nr170204.pdf>PDF 78 KB) and April 
21st (<http://www.usgeothermal.com/news/nr210404.pdf>PDF 78 KB).

U.S. Geothermal plans to build a binary-cycle power plant at Raft 
River, employing the same technology that was first demonstrated 
there by DOE over 20 years ago. Binary-cycle power plants use the hot 
geothermal fluid to vaporize a secondary fluid, which is then routed 
through a turbine to produce power. The secondary fluid is then 
cooled and reused, and the cooler geothermal fluid is injected back 
into the underground reservoir, allowing virtually no emissions from 
the power plant. See the 
<http://www.eere.energy.gov/geothermal/powerplants.html#binary>technol 
ogy description from the DOE Geothermal Energy Program and the 
<http://www.usgeothermal.com/project.php>project description from 
U.S. Geothermal.

New System Generates 4.5 Megawatts from Gas Turbine Exhaust

 
ORMAT's heat recovery system in Louisiana.
Credit: ORMAT

ORMAT, a company known largely for geothermal power development, 
announced in late April that it has installed a heat recovery system 
at a natural gas processing plant in Louisiana. The system draws on 
the ORMAT Energy Converter, which uses binary-cycle power plant 
technology. It converts the waste heat from two gas turbines into 4.5 
megawatts of power, and has been operating since February. Although 
the system is the first of its kind in the United States, ORMAT has 
installed similar units in Canada, Germany, and Japan, and plans to 
startup an additional 24 megawatts of heat recovery plants in early 
2005. See the <http://www.ormat.com/news_048.htm>ORMAT press release 
and <http://www.ormat.com/technology_cement_3.htm>technology 
description.



Site News

<http://www.deforum.org/>Distributed Energy Forum

The Consumer Energy Council of America's Distributed Energy Forum 
provides basic information about distributed energy, as well as a 
calculator that provides cost estimates for a range of distributed 
energy installations and locations. Distributed energy involves 
generating power at or near the end user, in contrast to conventional 
electricity produced at large central generating plants and requiring 
transmission over long distances to customers. The Distributed Energy 
Forum Web site helps consumers understand distributed energy 
technologies, basic economic factors, and regulatory and 
environmental issues, so they can make informed decisions about 
whether a specific distributed energy technology is appropriate for 
their needs.



Energy Connections

Despite a Rough Spring, California Expects No Power Problems this Summer

The operator of California's electrical power grid reported in 
mid-April that the state should have adequate power resources to meet 
its peak demand this summer, "barring transmission outages, 
significant generation outages, natural disasters, or local and/or 
national catastrophes." The California Independent System Operator 
(ISO) expects the state's peak power demand to hit 44,422 megawatts 
this summer, while it expects to have 48,712 megawatts of generation 
available, plus 75 megawatts of demand response, yielding a power 
surplus of 2,750 megawatts. The ISO warns, however, that congestion 
of the transmission lines serving southern California could cause 
reliability problems there. The ISO also adds an additional caveat to 
its forecast, warning that "early, extended operation of generating 
units can result in higher forced outages or encroachment upon 
environmental limitations, which restrict the number of hours a 
generating unit can run." See the California ISO's "2004 Summer 
Assessment" 
(<http://www.caiso.com/docs/09003a6080/2f/ca/09003a60802fca50.pdf>PDF 
720 KB). 
<http://www.adobe.com/products/acrobat/alternate.html>Download 
Acrobat Reader.

This summer may go well, but the ISO has already had some 
difficulties this spring, as unexpectedly high power demands struck 
while some power plants were still down for maintenance. Heat waves 
in late March and again last week caused the ISO to declare power 
emergencies. Last week's heat wave caused a peak demand of about 
40,451 megawatts, and led the ISO to ask Southern California Edison 
(SCE) to curtail its load by 600 megawatts through voluntary power 
reductions by commercial users. See the press releases from the 
<http://www.caiso.com/newsroom/releases/>California ISO and 
<http://www.edison.com/media/indiv_pr.asp?id=5059>SCE.



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